diff --git a/.gitignore b/.gitignore
index 7b5c52b6..265cd23a 100644
--- a/.gitignore
+++ b/.gitignore
@@ -24,3 +24,4 @@ cscope.*
 .*.swp
 # Failsafes
 !.gitignore
+restorecond/restorecond
diff --git a/Makefile b/Makefile
index 7ebe36e4..ed1e3b29 100644
--- a/Makefile
+++ b/Makefile
@@ -2,6 +2,12 @@ SUBDIRS=libsepol libselinux libsemanage sepolgen checkpolicy secilc policycoreut
 PYSUBDIRS=libselinux libsemanage
 DISTCLEANSUBDIRS=libselinux libsemanage
 
+INOTIFYH = $(shell ls /usr/include/sys/inotify.h 2>/dev/null)
+
+ifeq (${INOTIFYH}, /usr/include/sys/inotify.h)
+	SUBDIRS += restorecond
+endif
+
 ifeq ($(DEBUG),1)
 	export CFLAGS = -g3 -O0 -gdwarf-2 -fno-strict-aliasing -Wall -Wshadow -Werror
 	export LDFLAGS = -g
diff --git a/policycoreutils/.gitignore b/policycoreutils/.gitignore
index 53d5d558..6869d85d 100644
--- a/policycoreutils/.gitignore
+++ b/policycoreutils/.gitignore
@@ -1,6 +1,5 @@
 load_policy/load_policy
 newrole/newrole
-restorecond/restorecond
 run_init/open_init_pty
 run_init/run_init
 secon/secon
diff --git a/policycoreutils/Makefile b/policycoreutils/Makefile
index c9cccb8a..1d07125e 100644
--- a/policycoreutils/Makefile
+++ b/policycoreutils/Makefile
@@ -1,11 +1,5 @@
 SUBDIRS = sepolicy setfiles semanage load_policy newrole run_init sandbox secon audit2allow sestatus semodule_package semodule semodule_link semodule_expand semodule_deps sepolgen-ifgen setsebool scripts po man hll
 
-INOTIFYH = $(shell ls /usr/include/sys/inotify.h 2>/dev/null)
-
-ifeq (${INOTIFYH}, /usr/include/sys/inotify.h)
-	SUBDIRS += restorecond
-endif
-
 all install relabel clean indent:
 	@for subdir in $(SUBDIRS); do \
 		(cd $$subdir && $(MAKE) $@) || exit 1; \
diff --git a/policycoreutils/restorecond/Makefile b/restorecond/Makefile
similarity index 89%
rename from policycoreutils/restorecond/Makefile
rename to restorecond/Makefile
index 93050f00..7a517171 100644
--- a/policycoreutils/restorecond/Makefile
+++ b/restorecond/Makefile
@@ -16,8 +16,10 @@ SELINUXDIR = $(DESTDIR)/etc/selinux
 DBUSFLAGS = -DHAVE_DBUS $(shell $(PKG_CONFIG) --cflags dbus-glib-1)
 DBUSLIB = $(shell $(PKG_CONFIG) --libs dbus-glib-1)
 
+SETFILESDIR ?= ../policycoreutils/setfiles
+
 CFLAGS ?= -g -Werror -Wall -W
-override CFLAGS += -I$(PREFIX)/include $(DBUSFLAGS)
+override CFLAGS += -I$(PREFIX)/include $(DBUSFLAGS) -I$(SETFILESDIR)
 
 USE_PCRE2 ?= n
 ifeq ($(USE_PCRE2),y)
@@ -32,7 +34,7 @@ all: restorecond
 
 restorecond.o utmpwatcher.o stringslist.o user.o watch.o: restorecond.h
 
-restorecond:  ../setfiles/restore.o restorecond.o utmpwatcher.o stringslist.o user.o watch.o
+restorecond:  $(SETFILESDIR)/restore.o restorecond.o utmpwatcher.o stringslist.o user.o watch.o
 	$(CC) $(LDFLAGS) -o $@ $^ $(LDLIBS)
 
 install: all
diff --git a/policycoreutils/restorecond/org.selinux.Restorecond.service b/restorecond/org.selinux.Restorecond.service
similarity index 100%
rename from policycoreutils/restorecond/org.selinux.Restorecond.service
rename to restorecond/org.selinux.Restorecond.service
diff --git a/policycoreutils/restorecond/restorecond.8 b/restorecond/restorecond.8
similarity index 100%
rename from policycoreutils/restorecond/restorecond.8
rename to restorecond/restorecond.8
diff --git a/policycoreutils/restorecond/restorecond.c b/restorecond/restorecond.c
similarity index 99%
rename from policycoreutils/restorecond/restorecond.c
rename to restorecond/restorecond.c
index 7746427c..4c8c99cf 100644
--- a/policycoreutils/restorecond/restorecond.c
+++ b/restorecond/restorecond.c
@@ -55,7 +55,7 @@
 #include <signal.h>
 #include <string.h>
 #include <unistd.h>
-#include "../setfiles/restore.h"
+#include "restore.h"
 #include <sys/types.h>
 #include <syslog.h>
 #include <limits.h>
diff --git a/policycoreutils/restorecond/restorecond.conf b/restorecond/restorecond.conf
similarity index 100%
rename from policycoreutils/restorecond/restorecond.conf
rename to restorecond/restorecond.conf
diff --git a/policycoreutils/restorecond/restorecond.desktop b/restorecond/restorecond.desktop
similarity index 100%
rename from policycoreutils/restorecond/restorecond.desktop
rename to restorecond/restorecond.desktop
diff --git a/policycoreutils/restorecond/restorecond.h b/restorecond/restorecond.h
similarity index 100%
rename from policycoreutils/restorecond/restorecond.h
rename to restorecond/restorecond.h
diff --git a/policycoreutils/restorecond/restorecond.init b/restorecond/restorecond.init
similarity index 100%
rename from policycoreutils/restorecond/restorecond.init
rename to restorecond/restorecond.init
diff --git a/policycoreutils/restorecond/restorecond.service b/restorecond/restorecond.service
similarity index 100%
rename from policycoreutils/restorecond/restorecond.service
rename to restorecond/restorecond.service
diff --git a/policycoreutils/restorecond/restorecond_user.conf b/restorecond/restorecond_user.conf
similarity index 100%
rename from policycoreutils/restorecond/restorecond_user.conf
rename to restorecond/restorecond_user.conf
diff --git a/policycoreutils/restorecond/stringslist.c b/restorecond/stringslist.c
similarity index 100%
rename from policycoreutils/restorecond/stringslist.c
rename to restorecond/stringslist.c
diff --git a/policycoreutils/restorecond/stringslist.h b/restorecond/stringslist.h
similarity index 100%
rename from policycoreutils/restorecond/stringslist.h
rename to restorecond/stringslist.h
diff --git a/policycoreutils/restorecond/user.c b/restorecond/user.c
similarity index 100%
rename from policycoreutils/restorecond/user.c
rename to restorecond/user.c
diff --git a/policycoreutils/restorecond/utmpwatcher.c b/restorecond/utmpwatcher.c
similarity index 100%
rename from policycoreutils/restorecond/utmpwatcher.c
rename to restorecond/utmpwatcher.c
diff --git a/policycoreutils/restorecond/utmpwatcher.h b/restorecond/utmpwatcher.h
similarity index 100%
rename from policycoreutils/restorecond/utmpwatcher.h
rename to restorecond/utmpwatcher.h
diff --git a/policycoreutils/restorecond/watch.c b/restorecond/watch.c
similarity index 100%
rename from policycoreutils/restorecond/watch.c
rename to restorecond/watch.c